A+ Answers

1. Partridge Inc. provides the following information for the year 2014:

Net income $31,200

Market price per share of common stock $12.00/share

Dividends paid $0.80/share

Common stock outstanding at Jan 1, 2015 110,000 shares

Common stock outstanding at Dec 31, 2016 150,000 shares

The company has no preferred stock outstanding. Calculate the dividend yield for common stock.

2. Debra Technologies invested $50,000 to buy $50,000 face value, 8%, five-year in municipal bonds on January 2, 2010. The bonds will mature on January 2, 2015. The bonds pay interest semiannually on January 2 and July 2 every year till maturity. Based on the information provided, what is the Interest Revenue journal entry for the transaction on January 2, 2014? (amount and debit/credit)

3. Compute the present value of $30,000 discounted back 6 periods at 7%.

4. Rodriguez Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

December 31, 2014 and 2013

2014 2013 Increase/decrease

Cash $21,000 $18,000 $3,000

Accounts Receivable 31,000 35,000 (4,000)

Inventory 53,000 25,000 28,000

Plant and Equipment 123,000 90,000 33,000

Accumulated Depreciation- (43,000) (40,000) (3,000)

plant and equipment

Total assets $228,000 $168,000 $60,000

Additional information provided by the company includes the following:

1) Equipment costing $65,000 was purchased for cash.

2) Equipment with a cost of $32,000 and accumulated depreciation of $7,000 was sold for $45,000.

What was the amount of net cash provided by (used for) investing activities?

5. e-Bay Inc. has net sales on account of $1,200,000. The average net accounts receivable are $600,000. Calculate the days' sales in receivables.

6. The net income of a company for the year ended was $500,000. The company has no preferred stock. Common stockholders' equity was $1,000,000 at the beginning of the year and $2,000,000 at the end of the year. Calculate the return on common stockholders' equity.

7. The following is summary of information presented on the financial statements of a company on December 31, 2015.

Account 2015 2014

Current Assets $82,000 $70,000

Accounts Receivable 60,000 68,000

Merchandise Inventory 62,000 53,000

Current Liabilities 52,000 46,000

Long-term Liabilities 39,000 45,000

Common Stock 70,000 50,000

Retained Earnings 65,000 40,000

What would a horizontal analysis report show with respect to long-term liabilities? (looking for % increase or decrease)